loyalty program powered by pace methodology

Loyalty Program Powered by PACE Methodology Principles for Creating and Encouraging Valuable User Interactions

NextBee Media [email protected]

N e x t B e e C o r p o r a t i o n - F o l s o m , C A - U S A

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NextBee’s PACE Methodology is a systematic way of pursuing actions, which keeps focus where it

belongs: on your users’ experience. The results of extensive field experience will be discussed

throughout the following pages. Best practices for achieving success and examples that demonstrate the

methodology’s use and practice will be offered. By following the principles laid out by the PACE

Methodology, you can expect to have a strong grasp on an action-oriented approach to your users – an

approach which can be successfully implemented in nearly any situation, for nearly any type of business.

Contents

METHODOLOGY INTRODUCTION – PERSONAL. ADAPTIVE. CONTROLLED. EXCITING ................................... 3

CREATING A PERSONAL PROGRAM – WHY IT MATTERS, HOW IT’S DONE ..................................................... 4

ORGANIZING THE DESIGN OF A PERSONAL APPROACH ........................................................................................................... 4

HOW TO KNOW WHETHER YOUR PROGRAM TRULY CARES .................................................................................................... 5

CREATING PERSONAL CONNECTIONS (THAT GROW WITH YOUR USERS) ...................................................................................... 6

Empathize (with your users’ experience) ................................................................................................................................ 6

Ask (your best customers why they support you) ................................................................................................................... 6

Respond (as your users’ needs evolve, so should your program) ........................................................................................... 6

KEY PRINCIPLES OF AN ADAPTIVE APPROACH .................................................................................................. 7

SEVEN KEYS TO AN ADAPTIVE PROGRAM ............................................................................................................................. 7

A SOLID STRUCTURE AND A MALLEABLE CORE ..................................................................................................................... 9

IMPLEMENTING CHANGE (EXACTLY WHEN NEEDED) ............................................................................................................. 10

Review (how your program is used)...................................................................................................................................... 10

Refresh (your approach to engaging your users) .................................................................................................................. 10

Change (as you grow, and keep up with your program’s users) ........................................................................................... 10

SMART CONTROLS – HOW TO CREATE AND USE THEM ................................................................................. 11

IMPLEMENTING A STRATEGY OF CONTROLLED GROWTH ....................................................................................................... 11

CHARACTERISTICS OF A WELL-CONTROLLED PROGRAM ........................................................................................................ 12

BEST PRACTICES (FOR REMAINING COMPLETELY IN CONTROL) ................................................................................................ 13

Customize (for your users as much as you can) .................................................................................................................... 13

Map (the journey of your best user) ..................................................................................................................................... 13

Plan (ahead, so you’re ready when it’s time to re-engage) .................................................................................................. 13

AN EXCITING EXPERIENCE AT EVERY TOUCH POINT ....................................................................................... 14

ENTICING YOUR USERS BY INCREASING THEIR EXCITEMENT .................................................................................................. 14

THE PROGRAM STAYS EXCITING, YOU IMPLEMENT SOLUTIONS ............................................................................................. 15

YOUR USERS’ EXPERIENCE (AND HOW TO ENGAGE IT) .......................................................................................................... 16

Specify (the experience you expect your users to have) ....................................................................................................... 16

Executive Summary

NextBee


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Distill (your program goals into distinct engagement activities) ........................................................................................... 16

Motivate (with incentives that provoke an intrinsic value) .................................................................................................. 16

A LOYALTY PROGRAM WITH PACE ................................................................................................................... 17

THE CHANNEL IN THEIR POCKET ...................................................................................................................................... 18

GRAB EVERYONE’S ATTENTION WHEN YOU LAUNCH ........................................................................................................... 19

ACTIVATING YOUR CURRENT CUSTOMERS ......................................................................................................................... 19

CAPTURE YOUR WEBSITE’S CASUAL VISITORS .................................................................................................................... 20

LEVERAGE ALL AVAILABLE SOCIAL MEDIA.......................................................................................................................... 20

SOW THE SEEDS FOR YOUR SUCCESS ................................................................................................................................ 21

LOYALTY’S LIFETIME VALUE ............................................................................................................................................ 22

Appendix

NEXTBEE’S FEATURES ........................................................................................................................................... I

PRICING PHILOSOPHY ........................................................................................................................................ III

PROGRAM PRICING ............................................................................................................................................ VI

PROGRAM BENEFIT ANALYSIS .......................................................................................................................... VII

SOURCES ........................................................................................................................................................... VIII

DOCUMENT LICENSE ........................................................................................................................................... X


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NextBee created the PACE Methodology to distill its experiences in the field into an easy-to-follow guide

for shaping the success of nearly any business, in nearly any situation. We know that every product,

service, and user-base is unique. What is needed is not some marketing gimmick that will work in the

short term, but a method of approaching users that will carry you through nearly any scenario.

This is what we have designed the PACE Methodology to provide.

NextBee has worked with over 300 leading brands, both large and small, to engage their customers,

employees, and affiliates, reward positive behavior, and create or increase a strong base of dedicated

program users. In the following pages, we will expand these points further to fully flesh out this

methodology, and then we will share a few real-world discoveries that have informed these practices.

Personal

•Nurturing a strong personal relationship through your program requires active collaboration with your users. This helps them establish emotional touchpoints and provides them with a sense of purpose, which will keep them feeling fulfilled. Offering a personal relationship through your program is one of the best ways to provide a quality experience and earn support.

Adaptive

•Designing a structured program which can adapt as your users progress leads to both stability and growth. Listen as your customers' actions tell you what works. Discover the rewards and incentives that inspire them. Focus your best efforts on bringing the program to your users. Both your program's functional operation and its design layout should continuously match the demonstrated preferences of your users.

Controlled

•The difference between flexibility and chaos is smart control. Extensive tracking of program user activity allows you to maintain momentum and direct your users' engagment in the most effective way possible. This approach also ensures secure data with automated protection protocols to ensure that the integrity of your program is never in question.

Exciting

•Keeping your program fresh, intuitive, and fun works to increase excitement and helps your program users remain engaged. Developing a strong focus on both how customers interact with your program, and why, requires a constant dedication to clarity and consistancy. By following how your users enjoy using your program, you can develop increasingly addictive activities that your users will return to again and again.

NextBee

Methodology Introduction


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Organizing the Design of a Personal Approach When your program demonstrates that you care, it encourages your users to share the quality

experience that you provide to them with their friends, loved ones, and colleagues. The more personal

the experience you offer to your users, the more likely they are to share it with those nearest to them as

well as to the wider world around them.

Using your program to identify your users’ preferences and favorite activities, and developing more of

the same, is how you prove that these relationships matter to both yourself and your program

members.

How responsive are your users to email? How active are they on social media? When do they prefer to

be contacted? Does offering a discount for 20% off on the anniversary of their first purchase affect their

actions? What about on their birthday? When should the program forward a polite ‘thank you’, and

when should it trigger ad-hoc points for remaining active in the program?

These questions delve into the personal nature of your program’s relationship with your users by placing

the program even more firmly into their lives. An integrated process of reviewing the effectiveness of

your program’s functions is not intended to invoke reinvention. Your program will not act like a

traditional marketing campaign. It does not aim to bring a new message to a new audience. Instead, it

seeks to expand your audience through the natural interactions we all have every single day.

Your program is a personal approach to inspire your users to think of your program and its experience,

incentives, and rewards, whenever they think of their friends.

How to Know Whether Your Program Truly Cares At first, it may seem odd to equate business goals with relationships. Extensive real-world experience,

however, demonstrates that doing so keeps focus where it belongs, which is on designing a program

that can interact with its users on a personal level.

As we will continue to state: the users’ experience is key. Knowing what that experience is like inside

and out, and improving it at every possible interaction, is how you continue to innovate and expand the

ways your users value your program.

NextBee

Creating a Personal Program - Why It Matters, How It’s Done

“The will to win, the desire to succeed, the urge to reach your full potential...these are the keys

that will unlock the door to personal excellence.”

-- Confucius --


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Image attribution: ABC News

abcnews.com

A personal program is ready for deployment when it can demonstrate the following features and

approaches:

Memorable – You must always seek the details that can make a moment last. It is those

personal touches that always get noticed and embed themselves within our memories. They can

occur during any and every interaction.

Pleasant – Each experience must encourage the next. They must all form a near-endless

tapestry of positive interactions featuring favored products. When your products become

embedded into the positive memories of your program users, they will share it at every chance

they get.

Addictive – You want your users to spend more time with you, to use your product or service

more often, and to increase the amount of effort they expend on behalf of your business. Make

your program enjoyably habit-forming, and they will do all of these things and more.

Sharable – Make every tool available to your users to make sharing as effortless as possible.

Offer suggested content to share on their favorite social media sites. Offer in-site widgets for

sharing without having to leave your site. Provide incentives that encourage specific actions

within social media.

Every program’s primary objective is to increase sales, maintain user satisfaction, and improve both the

quality and quantity of new leads. To gain the success you seek, you must also create an environment

which makes your program memorable, pleasant, repetitious, and sharable. This is how your primary

goals will be achieved.

To demonstrate how a program can effectively engage with its users in a highly personal manner, we

offer a recent example of Twitter teaming up with NBC Universal and Comcast on a remarkably

innovative approach to engaging and leveraging their users, viewers, and customers.

1Launching in early 2014, the three technology giants

are enabling Comcast Xfinity cable subscribers to

change the channel on their TV, and begin watching

select NBC programming, by clicking on a tweet.

In addition to allowing viewers to quickly and easily

tune into their favorite shows on television, this new

in-Twitter app, dubbed ‘See It,’ will make it easy for

Comcast subscribers to watch live broadcasts on their

phones and tablets, as well as to set their DVRs to record.

This approach represents an evolution in the enthusiastic interactions already occurring between

television fans and the creators of their favorite shows on Twitter. Twitter fans will now be able to


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recruit their followers into watching their favorite shows with a simple retweet. The potential for

increasing viewership is enormous.

Creating Personal Connections (that grow with your users) Making your program truly personal involves following three important steps:

Empathize (with your users’ experience) Make every effort to walk in your users shoes. Go through the process of purchasing a product, joining

the engagement program, contacting customer service, and any other touch points where your

customers interact with your company. At each point, explore the different incentives and forms of

encouragement that could deepen the relationship.

Ask (your best customers why they support you) Think of your favorite customers. Whomever just came to mind, reach out to them. Offer 10% off their

next purchase if they’ll spend 10 minutes on the phone with you. Discuss their favorite features. Inquire

as to the effect these features have on their quality of life. Encourage an open discussion. Let them tell

you what kind of encouragement they need. As the program grows, regularly send surveys to your top

program users.

Respond (as your users’ needs evolve, so should your program) Seek out ways of demonstrating that you both listened and heard. If users offer a thoughtful perspective

through a survey response, use them in your next promotional campaign. Thank your users, perhaps

publicly, and offer a small reward. Nearly every action your users take should result in responses that

recognize their contributions.


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Seven Keys to an Adaptive Program Everyone constantly changes. Your users’ preferences will be driven by both internal and external

factors that evolve over time. Adaptability means growing in a way that meets your users where they

are, instead of asking them to come to you. The benefits are seen in a program that is able to evolve to

meet the expectations of an ever-growing base of enthusiastic users. NextBee’s experience finds that

consistently designing a robust and adaptive program requires following seven specific key principals.

1. Novelty People often find great enjoyment in a rewarding routine. So much so that creating a popular

routine can even become an impediment to increasing participation. Why should program users

do more when they’re perfectly satisfied with their current level of participation?

An adaptive program understands that leverage exists in popular rewards that can be used to

encourage greater participation from already active users. You can use this leverage to adjust

engagement activities in ways that provide for a new experience. For example, a program could

significantly increase the monetary value of a popular reward while also turning it into a

community achievement. Knowing other program users may be relying on their actions in order

to achieve a popular reward will likely encourage an increase in your program users’ efforts.

2. Social Influence Beyond making everything your program does easy to share, it also must inspire your users to

want to share. This is where your own expertise will come into play. Work to provide your users

with valuable or interesting information. Develop story-form content that tells of your

company’s journey, and that of its products. Keep an eye out for interesting information related

to your industry, and offer incentives to users who share it.

Social influencers value their positions within the personal networks a great deal. Your

program’s activities should be designed to encourage the expansion of both their personal

networks and the perceived value of that network. When a user needs your program in order to

sustain their social standing, they will remain loyal for a lifetime.

3. Program Lifecycle Market conditions change. User attitudes change. Your program’s goals do not change. Your

program does not have to either. Remember, a quality program is not about reinvention and

NextBee

Key Principles of an Adaptive Approach

“You have to be fast on your feet and adaptive or else a strategy is useless.”

-- Charles de Gaulle --

http://www.brainyquote.com/quotes/quotes/c/charlesdeg119209.html


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marketing ploys. It is about forming those deep relationships that can adapt, and even grow,

when conditions beyond our control force changes.

With a program that regularly adapts its incentive structure, including which events trigger

rewards, you are better positioned to anticipate disruptive change. Your program makes you

ready for anything the market throws your way. Adaptation in nature is about resiliency and

growth. This is how a robust program benefits you and your business as well.

4. Product Purchase History Adaptation makes your program approachable and intelligent. It is what allows you to use your

program to anticipate the need to change incentives and rewards, in order to keep pace with

user expectations.

What is it about your product that attracts your customers to begin with? Is it the products

utility and design? Is there a perceived social benefit to being associated with a brand? What is

the essence that sparks their interest? Keeping focus on what already captures your customers

loyalty helps ensure incentives and rewards remains based on their preferences.

5. User Profiles Use your program to develop a robust user profile that identifies the preferred incentives and

rewards of your top program users. Providing exactly the right encouragement, in the manner

most likely to be acted upon, is where adaption proves its worth. It’s a process that begins with

a program user survey, and lasts through the life of the program.

Many of the most effective segments are created by leveraging key characteristics of your top

user profile. Recognizing and acting on which segment of users prefers an incentive during the

shopping experience, to encourage a sale, and which segment responds to a reward after the

sale; is an example of adaptation in action.

6. Pricing and Margins Users who interact with a responsive program know their activities are being valued, because

the incentives adjust in response to their activities. You can use your program to find the value

that excites your program users the most, and mimic it when developing new products,

especially under brands where they are already loyal.

Discover popular product bundles, and even product/rewards bundles, by analyzing your

product sales in conjunction with program rewards data. With product bundling, you can often

spend a small amount of margin dollars on one product, while increasing the overall profit

margin of the bundled product.

7. Incentive Responsiveness For a program to engage customers and generate loyalty, it must structure its incentives around

future actions, accomplishments and goals. Unlocking a program level that allows access to


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better rewards might include a new profile badge, and should include 3-5 tasks that follow a

progressive path towards the next level, and greater recognition.

The path the program takes must be customized to reflect your product and services, program

goals and the profile of your top program users.

This also requires an understanding of what incentives are not – compensation. Incentives are

meant to motivate future behavior. Compensation is merely payment for past activity. The

difference can become slight, but it is important to note.

A Solid Structure and a Malleable Core Within your overall program’s architecture, you must adapt at the personal level previously discussed.

Far from being a challenge that must be overcome for your program to be successful, adaptation should

be an integral part of the approach itself. It should be seen as the end result and primary benefit of the

program’s features, while expressing the following characteristics:

Flexible – As your users interact with your program, elements should change and evolve to meet

their needs. The acceptance and use of both engagement activities and rewards should be

automatically analyzed for patterns of preferences, while it should be understood that a

meaningful reward for a new user is different than for someone with a much longer

relationship.

Inquisitive – Using surveys and contests, program users should be allowed to choose their next

reward from a selection of options. Other innovative ways of exploring core desires should

motivate user-behavior to ensure that your program remains ahead of the curve.

Alert – Regular updates and program adjustments should continually fine-tune your program’s

approach to your users to encourage, in turn, a robust response. The more you use your

program to react to your user’s needs and wants, the greater their loyalty and willingness to act.

Approachable – Adaptation is serious business. The program, overall, still needs to maintain a

friendly demeanor. Though you must respond to your users with haste, never lose track of your

program’s voice. Be polite during all interactions and learn to deploy humor effectively, when

appropriate.

For an illustrative example of a company proving the ethos of adaptability, consider Netflix. This is a

company that started a mail-order DVD business which became so successful that it drove the iconic

Blockbuster rental chain out of business. It has since transformed itself into a content creator that

develops and streams its own programming, along with that of other partners, on a platform available

nearly anywhere there’s a screen.


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2In 2013, Netflix surpassed HBO in number of subscribers at 30 million and its

programming was nominated for, and won, a slew of Emmy awards and

Golden Globes. So how did this mail-order business turn itself into a major

Hollywood playmaker to the delight of its millions of subscribers?

They accomplished this by never resting, always testing, and staying focused

on their subscriber’s quality of experience. The path was not always smooth,

but their success in undeniable.

3Netflix began research and development of video streaming services in 2001.

To demonstrate just how earlier that was in terms of internet development

and video, we remind you that YouTube launched in 2005. It was not until a

full decade after Netflix first began its exploration into streaming that it

offered the streaming service as a standalone product completely separate

from its mail-order offering.

Throughout that decade of development, Netflix continuously tested its services and abilities on small

segments of users. They also did not stop with great technology. Once quality streaming became a

reality, Netflix continued to follow their users where they wanted to go: content, a lot more content.

Implementing Change (exactly when needed) An adaptive program gives you the insight needed to know when to move, where to go, and how your

users currently prefer to be engaged. Building your program from the ground up, so that it always

contains elements in transition in support of greater growth, helps ensure that your program remains

relevant for the long-term. Keeping your program fresh and adaptive means developing it from the

beginning around a framework of best practices:

Review (how your program is used) Schedule at least one hour per week to review all relevant data regarding your users with your team.

Include information beyond program activity data, such as interactions tracked through your CRM

system.

Refresh (your approach to engaging your users) Aggressively schedule program updates. If an initial test of a new message, incentive, or reward on a

particular segment demonstrates a high potential for success, quickly implement it across the entire

program. Encourage all program stakeholders to pursue ways of reducing friction and increasing

engagement.

Change (as you grow, and keep up with your program’s users) Always have your program doing something, even if it means going with your gut. This does not mean

inventing busy-work. Change should be highly automated. It does mean taking risks in pursuit of

optimization, but of course you should always minimize exposure by testing ideas on segments before

introducing them to a broader audience.


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Implementing a Strategy of Controlled Growth Program growth can often hinge on small things. It is often generated through a careful balance

between the creativity and initiative of a program’s users, on the one hand, and on the other the needs

of the business. Engagement often has multiple stakeholders planning on its success, including program

users. Understanding this will help your program use incentives as leverage to gain desired behaviors

and activities.

In other words, mostly use carrots, but don’t be afraid of a little stick.

A smart program focuses on building the relationships that lead to a lifetime of value. It means using

your users’ first names at every opportunity, knowing when major anniversaries might soon be

approaching, and inserting the date of their first purchases in every email you send (and thanking them

each time). A well-controlled program can even recognize the birthdays of users’ extended families,

which can play a role when planning targeted promotions.

These features encourage greater engagement from your users and encourage a lifetime of long-term

program buy-in - as does insisting on a series of 3-5 tasks before promoting users to a higher program

level with more prestigious rewards. The same goes for polite messages informing users that bonus

points await them with every third activity complete, especially when they already have two.

Smart controls provide just the right type of push, exactly when needed.

User-tracking abilities have grown enormously in just the past few years, creating an opportunity for

developing highly specialized segments of users and channel sales in a way that simply was not possible

just a very short while ago. These capabilities allow you to control the growth and momentum of your

program by offering targeted and timed incentives and rewards to keep your users excited and engaged.

There always remain market forces beyond the reach of any data analysis. There is no amount of data

that will allow your program to anticipate every potential occurrence. Fortunately, this inherent truth

also illuminates a valuable aspect of any well designed program.

Going through the process of personalizing your program and keeping it adaptive also serves to

strengthen the relationship you have with your users. You can always exert influence and control over

the relationship by keeping your program engaged. Engagement can help those relationships endure

during more challenging times.

Smart Controls – How to Create and Use Them

“If you can't control your peanut butter, you can't expect to control your life.”

-- Bill Watterson --

NextBee

http://www.goodreads.com/author/show/13778.Bill_Watterson


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Individually, attention to the types of details that allow you to exert ever-greater control over your

program may seem no more than a polite way to conduct business. As the number of users participating

in your engagement program increases, patterns will begin to emerge that can help illuminate the most

valuable direction a program can take, as well as offer insights on how to encourage your users to take

you towards growth. While the value of a controlled program can be immediately apparent, its true

worth becomes demonstrated over time.

Characteristics of a Well-Controlled Program Taking advantage of the opportunities these patterns represent requires a systemic approach to

program control. This means agreeing to guidelines on what does, and does not, qualify as actionable

information that can be used to direct to program’s growth:

Tracked – Whether through a robust, tagged, tracking system, or advanced browser-based

tracking, you must always make every effort, within reason, to expand the number of ways you

follow your users as they interact with your brand. Though assumptions can often prove correct,

it is better to not have to make them at all.

Persistent – Though a small bump in activity from one-off promotions can certainly prove

valuable, real momentum is created with consistency. A strategy must not only work to be

effective, it must work repeatedly. Otherwise, the needed ROI simply will not break through.

Sustainable – Some aspects of your program will be set on auto-pilot from the moment it is

initiated, such as a brief ‘thank you’ message for joining the program. Others will require a

greater level of attention from the program administrator or other team members. As new

opportunities create new tasks, you must ensure the resources are available to ensure their

success.

Reliable – When program users see that their actions have an impact, they will stay engaged

long-term. Through their actions, they demonstrate a desire to form a strong relationship with

your product or service. So long as the program stays relevant, they will actively seek to nurture

the relationship’s growth themselves.


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Best Practices (for remaining completely in control) Knowing which tracked information is valuable, and which represents a momentary spike that will not

be repeated, is often referred to as ‘Hearing the signal through the noise.’ By developing and following

guidelines for reviewing your users’ activity data, you can understand the difference between those

signals for yourself. From users who indicate action should be taken, to the statistical noise that

represents momentary concerns, but no long-term pattern.

Observing how your users interact with your program, and creating guidelines for using relevant

program activity data, requires the complete integrity of your program, including the security of your

users’ information and data. Following industry-standard security protocols and exceeding best

practices guarantee that you will make program decisions based on accurate data, while assuring your

users that you value their information and protect it.

Developing and using you own guidelines is how program control can be maintained. Those guidelines

should, in general, follow three important tenets:

Customize (for your users as much as you can) You should consistently be looking at your segments and discovering more. Basic demographics are both

the standard and just the beginning. Segmenting by rewards preference may indicate something

interesting that can be further explored. You simply do not know until you try, and segments allow you

to always be trying, without the risk of testing new ideas on your entire user base.

Map (the journey of your best user) Know the path you want your users to take. Sketch out how they join the program, what they do first,

what they do next, how long you expect it to take to gain the first reward, and more. Create unique

incentives for each interaction, and know that not every interaction requires one.

Plan (ahead, so you’re ready when it’s time to re-engage)

A controlled response is always a well-prepared one. Familiarity breeds acceptance, and success leads to

even more support. It is easy to find fans of a sports team when the team is winning. Likewise, many of

those users who demonstrated little interest during your program’s launch will become much more

interested as the program’s success becomes more and more apparent. As your base of users continues

to expand the use of the engagement tools available to them, seek to leverage their activity by returning

and re-engaging your original base of customers.


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Enticing Your Users by Increasing their Excitement Every program involves tasks in pursuit of a goal. Both the design of the tasks, and the rewards,

contribute to the overall enjoyment of the program. The best programs make all of their tasks so fun

and exciting that completing them becomes addictive.

Effectively using your program to generate excitement is part learned intuition and part smart design. In

many ways you already know how. Whenever you interact, or someone in your company interacts with

one of your best customers, that person usually knows it. The company representative’s approach,

demeanor, and behavior changes to fit the preferences of each customer. Everyone understands the

importance of engaging with customers appropriately, since their value to the company is clear.

Now you can engage with every customer in just the same way, and it’s equally important that you

begin to do so, otherwise your program may not seem exciting.

Do your users mostly communicate with their friends through email or social media? Would they prefer

a coupon on a future purchase, a discount on the current purchase, or points towards a larger reward?

Do they interact more with a clean interface with different sections behind different tabs, or do they

want just one big page with all the information they could possibly need readily visible?

With the understanding of these questions firmly in hand, you can build a strong base of users who are

demonstrably excited to actively engage their friends, families, and associates for the benefit of your

product or service.

By designing your program to engage early and often with early adopters, in an effort to excite those

who demonstrate an active willingness to support your program, you lay the groundwork for aggressive

expansion and growth. These early program adopters typically demonstrate an influence that matches

their number of contacts. Friends, and many others, often look to these types of program users for

information, ideas, and products that can genuinely add value to their lives. Their opinion is held very

highly among those in their networks. When they get excited, so do their friends.

We do not mean to suggest that you should seek to become friends yourself with active program users.

Generating excitement must be smart if it is to be successful. Though some individual interaction may

occur - such as a direct follow-up to a survey response - individual interaction is not the goal. The goal is

to make the program better.

An Exciting Experience at Every Touch Point

“Life is an exciting business, and most exciting when it is lived for others.”

-- Helen Keller --

NextBee


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Typically, a user reaches VIP status, or its equivalent, through regular purchases. In other words, those

who spend the most money receive the most attention and get the best deals. Your program offers the

ability to engage with a different VIP. Someone who may not regularly commit to outsized purchases,

but who does demonstrate an outsized influence.

Leveraging this influence on your behalf, and being rewarded for it, achieves the same effect as the

traditional VIP – only instead of one person making many purchases, it is several people making several

purchases. Many of these users will also demonstrate an ability to influence the preferences of their

friends, thereby creating virtuous cycles of new users who become active referrers, leading to higher

sales, greater program growth, and more new users – which continues the cycle.

The Program Stays Exciting, You Implement Solutions Understanding the need to engage more directly with those program users who demonstrate preferable

attributes, and defining what those attributes are, can be two very different things. Often created from

a mixture of demographics and activity data, the segment that represents your VIP users regularly

shares the following characteristics:

Social – Your top program users will engage across two or more social networks in addition to

regular email. They may not be heavy users in all of them, but they do demonstrate a regularity

that shows a high comfort level with each. Your program must meet them where they are,

everywhere.

Positive – Top program users always go above and beyond with regularity. They’re always up for

a good time with their friends. They fill out surveys, take an active role in contests and

sweepstakes, drive group achievements, and go out of their way to encourage others to do the

same. Use their responses to understand which activities will be broadly popular.

Engaged – Top program users will often make the effort to add additional information in

comment boxes. In fact, the purpose of comment boxes in surveys may be solely to identify

those who are likely to become power users of your program. Those who use comment boxes

indicate a willingness to be more involved with the growth of the program.

Consider the popular subscription program, Amazon Prime. Typical subscription models of engagement

offer a discount on a product or service if the customer agrees to a regularly occurring purchase. The

value is in the product. The value of the subscription for the customer is the product at a cheaper price,

plus the ease of a regular schedule managed by someone else.

Amazon did not follow this model when developing their Prime program. Instead, they viewed the

entire customer experience holistically. Customers were already receiving a discount on most items

when compared to traditional brick-and-mortar stores. Doing more of the same – providing a greater

discount – was viewed as providing a reward for behavior that was already occurring, instead of an

incentive that would encourage greater engagement.


Page 16

Instead, Amazon placed its incentive in the

context of what would excite their users the

most: time. By offering “free” two-day

shipping on most items, they created a

successful engagement program that placed

its value in the online shopping experience,

and then offered an incentive that

increased the attractiveness of that

experience.

6Amazon’s Prime program has been an

enormous success since its launch in 2005.

By the end of 2012, it had an estimated 10 million users. Amazon reports that its members are their best

customers, regularly purchasing twice the number of products when compared to the company’s non-

Prime member customers.

Every business is, of course, unique. No one will be able to replicate Amazon’s, or anyone else’s exact

path to success. Nor does anyone need to try. You are already well aware of the process involved with a

new customer who is making a purchase, since you already know the steps they have to take and the

overall experience they have while making a purchase.

Your Users’ Experience (and how to engage it) You know your customers’ experience already. By making use of their activity data, you can come to

understand what, within that experience, they value. Creating this opportunity for a systemic increase in

user engagement generally requires following three important steps:

Specify (the experience you expect your users to have) Make certain that you retain complete focus on the value you want to bring to your users’ experience.

Explore where that experience can be improved. Always ask yourself, and your top program users, how

the essential elements of the experience you offer can be leveraged for greater engagement.

Distill (your program goals into distinct engagement activities) Focus the goals of you program and separate each of them into different engagement points. Develop,

deploy, and test different incentives for each engagement point. As you continue to progress and

engage across multiple platforms, and in multiple ways, look for methods of streamlining your approach.

Motivate (with incentives that provoke an intrinsic value) Provide incentives that invoke an intrinsic value you share with your users. If unsure, then make this a

point of inquiry when asking your favorite program members. Then combine that intrinsic value with the

inherent value of the incentives you choose. It is often a balance between the intrinsic value and

perceived monetary value of different incentives and rewards that drives user activities.


Page 17

A loyalty program is about relationships. Establishing them. Growing them. Continuing them far into the

future. Loyalty is developed through trust and repetition. When your customers know that you care

about their experience, and are willing to adapt to their changing needs, they’ll return to you again and

again. They’ll come to rely on you to provide the products and services they view as essential to living a

fulfilled life, regardless of current economic conditions.

Loyalty is an active expression of the value inherent within a strong relationship.

A robust loyalty program begins with an

introduction to near-endless possibilities. An

announcement of the company’s desire to engage

their customers, and get to know them better, by

providing valuable rewards in addition to a

rewarding experience.

In one of its simplest forms, a loyalty program

rewards customers for every purchase they make.

The customer often receives either points towards

valuable rewards, or discounts on future

purchases. Because points and benefits build up

over time, the customer has an incentive to remain

loyal.

A robust and personalized loyalty program augments this basic approach with activities, engagement

and incentives designed to establish an emotional connection. The program recognizes important

anniversaries, such as birthdays and the date of the very first purchase. It communicates through the

preferred method of the program user. It reaches out and asks the program user’s opinion on new and

regular features. It invites the program user to choose their favorite reward. It encourages the building

of a community of active participants advocating persuasively on behalf of a company they have come

to view as a friend.

A quality loyalty program is a manifestation of a company’s commitment to their customers.

Everyone seeks value from their relationships. By providing what your customer’s seek, and

demonstrating a commitment to the relationship you hold with them, you ensure their commitment for

many years to come.

A Loyalty Program with PACE

“Do not seek to create loyalty. Instead, create the conditions which earn it. Reward the actions

that generate it. Value the relationships that keep it. These actions sustain a life-long growth.”

-- NextBee --

NextBee


Page 18

The Channel in Their Pocket Push notifications are set to drive loyalty program user engagement and interaction like never before.

The power of placing your program in the purse and pocket of every one of your users cannot be

overstated. By pushing your message directly to the most compelling screen in use today – our phones –

engagement has become more direct, personal and relevant than ever before.

You can develop your own branded mobile apps that place your program directly into the purse and

pocket of every one of your customers. Now, when you want to get an important message out to your

top program users, you can add push notifications to your arsenal and guarantee greater promotion

penetration than ever before.

Beyond superior promotion control, a branded mobile app with push notifications gives you the ability

to interact with your program users in a highly personalized manner. Allowing your program to leverage

an entire community of engaged users.

Stay in touch across multiple platforms – send automatic notifications when a user’s program

related post on social media is liked and shared by their friends, family and colleagues

Push motivational updates – automatically inform every program member whenever there’s a

change in the top 5 leaderboard positions

Creatively use innovative features – develop geo-targeting related activities and games, such as

rewarding users merely for visiting a certain store or area multiple times

Program users rely on their smartphones to keep them connected to the most important people,

activities and events in their lives. It’s the best platform for fostering a close personal relationship that

will provide a lifetime of value for both the user and your program. Instead of encouraging your program

users to interact with the program through your website, you can push important information and

activities directly to your users.

When new rewards are added or earned, you can automatically push an image of the reward out to your

users. When their one social engagement away from earning bonus points, your program can push a

one-click method for achieving the incentive. If you want to form your users into teams and entire cities

into game boards, you can push your imagination to the limit of the possibilities that mobile enables.

Mobile platforms continue to develop innovative ways of facilitating activities and tracking your

program user’s preferences. By relying on an equally adaptive cloud-based platform, and by designing

loyalty program features as plug-and-play software modules, NextBee remains well-positioned to

continue to merge the newest technologies with advanced features.

Today’s most advanced smartphones have become as affordable as they are prevalent. You may reading

this on one now. You can be sure your customers would like to interact with you through theirs. Now,

you can make that happen.


Page 19

Grab Everyone’s Attention When You Launch You want to begin with a bang, and there are few better ways to do this than by dangling an enviable

reward before everyone’s eyes. We strongly encourage launching your program with a sweepstakes that

features a special reward. Remember to be creative - ‘special,’ does not have to mean ‘expensive.’ There

can also be many ways to encourage and promote the program through a sweepstakes.

Incentivize User Activity – Give additional sweepstakes entries for taking a series of actions,

such as liking a social media post, sharing it on your timeline and linking to it through Twitter.

You can even add milestones, such as five consecutive days of activity, to trigger more entries.

Promote Reward Choice – Provide a series of rewards and allow your program users to choose

their favorites. Create a mixture of different types of rewards, including cash payouts, gift cards,

charitable donations and physical items

Segment Early and Message Often – You know your customers best. Use that knowledge to

create your own customer segments based on the demographics of your best users. For the first

three months of you program, and perhaps longer, send a unique invitation to join the program

to each customer in each segment of customers who are not additionally already subscribed

program users.

Activating Your Current Customers Be ready to engage with your customers often in the first few months of your program. Since they are

customers already, they are the ones who want you to succeed the most. They have already given you

their hard-earned money. They are already invested. Your goal is to encourage an emotional investment

as well. Though they may already be primed to like you, a little encouragement couldn’t hurt.

Send Surveys to Your Customers –Ask your users to choose a new reward from a selection of

three or four options. Learn how frequently they would like to receive the program’s newsletter.

Discover their favorite social media sites (including ones you may not know).

Provide Ad-Hoc Points – Increase the engagement level of those customers who become early

adopters by randomly rewarding those who show initiative. You can even reward a whole

segment in order to jumpstart the creation of a community.

Directly Contact Early Achievers – Those users who achieve the first rewards the most quickly

can offer a wealth of actionable information. Learn their favorite activities for gaining points.

Ask what they would suggest to other users. Give them a status reward by featuring them in an

upcoming newsletter.


Page 20

Capture Your Website’s Casual Visitors Creating a strong appeal to your current customers places you in a good position to capture the

attention of new and casual visitors to your website. New customers and program users will likely share

similarities with your current customers when it comes to choosing whether or not to join. This means

that your program can now serve as an additional reason why casual visitors may become dedicated

customers. You can capitalize on their similarity in support of both your business and your program.

Add a Specific Page Featuring Loyalty Rewards – People often search for deals by using terms

that combine product and service names with words like ‘special offer.’ Develop a new page on

your site that can direct these users to view the value of becoming a loyal customer. Highlight

popular incentives and activities and feature user testimonials where appropriate.

Create a ‘Something of the Week’ – Almost without fail, a regularly posted and interesting

‘something’ spikes web visits. It can be an image or video related to you, a user submission, or

merely the internet-standard image of a cute kitten.

Compel Your Casual Visitor to Take Action – Identify friction points and then offer bonus points

or special incentives to encourage action at those key points. The easiest action is no action:

auto-enroll new users into the program and give them points ‘just for joining.’ The first reward is

often the most important, it nearly always guarantees future actions and activities. Work to

create a viable way for new users to achieve that first reward.

Leverage All Available Social Media As MySpace demonstrates, what is popular today may very well be gone tomorrow. The social media

driven internet moves fast and new networks develop quickly. You can rely on your program users to let

you know when a new social media site must be engaged. Aggressively promoting your program

through any social media platform revolves around one important characteristic: remaining active.

A well-known film director once quipped, ‘80% of success is just showing up.’ It’s humorous because

though there’s truth in it, any successful person can tell you that it’s not true at all. Consistently

showing-up and performing at a high level, day-after-day - that’s what leads to success.

This age-old wisdom applies perfectly to the modern communication platforms of social media. Letting

your followers know they can rely on you to consistently post quality content is the first step towards

gaining a dedicated following. Here are a few more ways such a following can be attracted and grown:

Do the Maintenance Work – It’s not all about just posting adorable cat videos. Consistently use

a program-specific hashtag and always retweet those who use it too. Be ready to freely give ad-

hoc points to encourage viral behavior.

Be a Resource to Your Followers – Provide useful information that relates to your market or

industry and encourage your followers to share. Let your users know that you appreciate them


Page 21

by posting ‘thank you’ messages to the Facebook wall of up to five users per week. Follow-up as

quickly as possible whenever a user poses a question to you on social media. Whenever

interacting with users, ask them what they like about the program and then tweet their

answers.

Anticipate Viral Images, Gifs, and Videos – Sites like reddit.com, imugr.com and the cute kittens

featured on icanhas.cheezburger.com are often the first to display top-ranked content that goes

viral on Facebook and Twitter later in the day. Use those sites to anticipate and capitalize on

viral messages.

Sow the Seeds for Your Success Many of the suggestions offered above track closely with the first-quarter action plan NextBee provides

to all their clients. Many more strategies remain for promoting your program to a growing community of

dedicated users. No matter the strategy, we often encourage our clients, as well as ourselves, to keep

the following points in mind:

Display a Sense of Humor – Note: this is different than, ‘Be Funny.’ It essentially means

provoking laughter while also being nice. Humor that mocks can, and will, quickly backfire.

Provide an Ego Boost – Go out of your way to design a program that reminds users what a great

decision they made by joining the program. When users consider your brand, it should work as a

mirror which reflects their best characteristics back to them.

Remain Useful – Offer important information, and keep your users updated on current trends.

Work to develop a program that becomes a true resource for your users by helping them to

remain up-to-date and connected with what matters in their lives.

Controversy – Don’t go courting it, but don’t be afraid of it either. A program that is afraid to

ruffle feathers in pursuit of its goals does not inspire confidence from its users. Make bold

decisions and stand by them.

Be Dramatic – Especially on social media posts. Write with a flair you normally wouldn’t and

reference events in flamboyant terms. It’s amazing!

Aim for the Heart – Humor works well because it provokes socially acceptable emotions. Pulling

the heart strings with a touching message can have a similar effect.

You do not need to take this general approach and posture always, though it is often effective to deploy

a healthy mix of many of these suggested items. If you have solid messaging that works, but suddenly

starts to go stale, it’s a good list to remember to ensure you are still following core principals.


Page 22

The strategy you use to engage and grow an active base of loyal users will change as your program

progresses. A successful launch is only the first step. Consistently following a well-defined plan will

encourage the likelihood of any program’s growth and success.

Loyalty’s Lifetime Value When a program reacts to your users’ activities, by either thanking them, requesting they do it again, or

offering a more valuable reward, that user knows their participation mattered.

Such examples of personal interaction have proven to be major drivers of increased participation. The

program’s rewards will almost always get the most attention from your customers. By adding a layer of

interaction that adapts to the evolving needs of your customers, you create additional value that did not

previously exist.

Customers know that personal service is better service. They value it a great deal. When they know that

their activities and actions have a real impact on their own experience, and not just your bottom line,

they react. We all find activities more worthwhile and fulfilling when we receive both a response and a

reward. Your customers benefit both emotionally and financially from participating in a loyalty program

with you. The more they become involved, the more likely they are to remain loyal customers for a very

long time.

The benefits of loyalty are, of course, a two way street. A robust loyalty program provides important and

actionable data. Companies can quickly learn which messages, incentives and rewards increase sales

most effectively. They can also ascertain important details on the demographics and psychographics of

their top program users, which leads to the design of more effective promotions and an increase in the

number of customers involved.

Your program users will also quickly grow fond of favorite activities, look forward to doing them and

expect to be rewarded for their participation. Use their demonstrated desire as leverage to motivate

behaviors and activities that help you meet and exceed your program’s goals. Control the direction of

your loyalty program users’ energy and harness it to be as effective on your behalf as possible. Insist

that your program users perform and develop activities that increase results for you before increasing

rewards for your program users. This demonstrates in leadership that will inspire even greater loyalty

among your growing base of loyalty program users.

Developing a truly robust program is a primary key to success. It is what will establish emotional touch

points that lead directly to loyalty program users taking action.

Preferences, however, change over time. Some segments of customers will always prefer to

communicate through email. Others will migrate to social media platforms and expect their favorite

brands to meet them there. You return your customer’s demonstrations of loyalty when your program

establishes the adaptive ability to react positively to change and grow along with your customers.


Page 23

Excitement in loyalty programs often centers on the rewards. Whether a grand prize, or public

recognition, it is the incentives that your program deploys that will maintain your users’ excitement for

as long as your program runs.

An incentive does not necessarily have to translate into something with a clear monetary value. The

right incentive, or series of incentives, involves three primary characteristics:

Thoughtfulness – The incentive should express a deeper than casual knowledge, much like

choosing a gift for a significant other.

Understanding – A shared point-of-view demonstrates empathy beyond the mere knowledge of

what your users’ value. An incentive can demonstrate an outlook on the world that you and

your users share. Sometimes, the real reward is helping others.

Reflection – Your users, clients, and employees must see themselves in the incentive. The

rewards must invoke those values you actively wish to see expressed in this world.

Incentives are an investment. They induce future behavior that will be profitable. Keeping your

incentives fresh is how your loyalty program will remain relevant in the lives of your users.

Again, this does not mean providing always-greater rewards with an increasingly expensive price tag. An

engaging incentive can be a badge on a profile, special access to VIP offers, public acknowledgement

and encouragement, or something as simple as a one-phrase, hand-written, thank-you note sent to a

single random program user each and every month.

An abundance of attention to detail is typically required when designing a new program. It needs to be

technically integrated and aesthetically pleasing; it needs to offer initial messaging and include

incentives that grab the attention of casual users and long-term customers.

When designed well, a program will almost always create excitement and gain some of the needed

attention on its own. A strong plan and solid execution will accelerate results.


NextBee’s Loyalty Program Features

Key Motivators for Program Participants

Track all loyalty rewards activity, both online and off, through a personalized dashboard customized to fit your program’s needs

Give choice as the first reward – your setup can include a nearly unlimited number of options that let users choose their loyalty reward

Follow every purchase, and loyalty points credited, no matter where the purchase occurs - offline, online, and even through phone sales

A positive feedback architecture means a high reward per dollar spent, leading to increased activity that is sustainable in the long run

Offer special bonus points to jumpstart activity and encourage already active users to do even more with your loyalty program

Segment high performing users and allow access to special VIP offers, raising the status of top loyalty program users and the desirability of increased engagement

Guaranteed Results through Smart Controls

Use our flexible rule configurator to give bonuses for any number of loyalty program activities, including interactions with a specific brand, category, and time of purchase.

Uncover valuable insights with

advanced analytics that help you segment and analyze patterns of activity and user behavior in both repeat and new sales

Re-engage dormant customers through special promotional credits that entice the user to again benefit from the loyalty program

Utilize quality customer service for its loyalty creating potential with ad hoc loyalty rewards provided during or after customer service interactions

Generate new revenue by offering a loyalty rewards club as a premium that provides greater access to your brand

Generate a personalized monthly points credit statement for an at-a-glance snapshot of how your loyalty program is growing on a regular basis

Appendix

NextBee


Best of the Breed Technology Platform

Generate a personalized monthly points credit statement for an at-a-glance snapshot of how your loyalty program is growing on a regular basis

Automated tracking of every purchases, including returns, charge-backs, and customer installment payments

Secure APIs automatically pull and push order data, allowing customers to quickly see and redeem their loyalty rewards points

Integrated data integrity protocols and double redundancy tracking ensures every segment, channel, activity, purchase, credit, and loyalty reward is conducted with accuracy

Readily available integration with all major ESPs and CRM systems ensures your loyalty program can track every interaction and activity

Customizable features allow you to

segment loyalty program users based on purchase amount, shopping frequency, and more

Commitment to Success of the Program

Expert assistance in designing an

optimized loyalty rewards structure that ensures your loyalty program entices users with the right mix of incentives

Expert graphic design resources and professional messaging assistance in support of both broad promotions and targeted engagement of your loyal customers

Analytical tools to identify and re-activate dormant customers through a mixture of interaction, engagement, and incentives

A/B testing and evaluation integration to support continual improvement with loyalty messaging, incentives, and periodic promotional offers

Support for providing guidance and encouragement through all customer service queries on the loyalty rewards program

Our knowledgeable personnel with

extensive experience offer the best practices for promotional campaigns based on successful loyalty programs


Pricing Philosophy

How Do You Measure Potential? It can be hard to account for the cost of a customer or client that is not there, just as it can be difficult to

ascertain how much more valuable a skilled employee or team might become with the right incentives.

A comparison between the value of a repeat customer and someone one who only buys once is slightly

more straightforward. Even then, however, the definition of ‘repeat’ must be carefully considered or the

average value risks becoming meaningless.

When NextBee is approached, the question forms in many ways. How does NextBee structure its

programs to ensure the investment is worth the cost? What methods are used to measure success?

When can the company expect to see a return on its investment?

No matter how it may be framed, how quickly our programs becomes ROI positive is the most important

question we are ever asked.

No one can see the future, and there are always risks to any endeavor. However, we hope to provide a

‘behind-the-scenes’ look at the value received when compared to the costs of deployment, as well as

the additional value you should expect to receive from the implementation of the programs themselves.

The NextBee Guarantee

Unlimited Tech Support – Days, nights, weekends, holidays: we’re here for you, always, at no

extra cost.

One Platform, Forever – All upgrades, enhancements, and new features can be made

continuously available for your program’s use.

No Price Increases – Stay within your program and most new benefits become yours at the

monthly price you pay now.


Pricing Considerations

NextBee looks at a variety of factors when determining the cost of a program. Every client is unique.

Some are quite capable of handling their own customization needs, while other clients rely on NextBee’s

expertise extensively. Either way, you will only pay for what you need, nothing more. NextBee is focused

on what works – for our clients and for ourselves.

Campaign Duration (numbers quoted are leveled to $100 for comparison)

Short Term - 75% less than the cost of doing it yourself*.

Long Term - Equal to 25% of your first year returns.

Customization (numbers quoted are leveled to $100 for comparison)

We provide the API for you to customize for FREE.

Back End Customization - 75% less than the cost of doing it yourself*.

Front End Customization - 90% less than the cost of doing it yourself*.

Service Level (numbers quoted are leveled to $100 for comparison)

Accessing and using our tools after training is FREE

Monthly Checkpoint Program Management - 90% less than the average salary of a Marketing

Manager**.

Weekly Checkpoint - a dedicated Account Manager providing status reports as frequently as you

want them - 75% less than the average salary of a Marketing Manager**.

A clear understanding of your own goals in any program is necessary for a true cost analysis to be

conducted. NextBee prides itself on working closely with its clients to help ensure ROI expectations are

met and exceeded.

By keeping the implementation costs low, the additional value generated by increased sales, more

frequent sales and more productive employees occurs quickly. The growth is often measurable in a very

short period of time.

*NextBee has a team of highly skilled in-house programmers. We know the general cost of an experienced programmer and

make use of economies of scale to greatly reduce this cost for our clients. The cost comparison is based on our experience and

experiences may vary. In fact, that’s why we offer you the API for free.

**The average salary of a Marketing Manager in the United States as reported by Salary.com on 01/15/2014


The Value Received

NextBee’s pricing structure must reflect more than the base cost of deploying a program. It needs to

encompass the full value of the service NextBee provides, as well as the considerable time, effort, and

talent demonstrated daily by NextBee’s employees. Consider the following:

A study conducted by Goethe University’s School of Business and Economics found the average

value of a referred customer to be 16% higher than a comparable customer.

Inc.com recently ran a report noting that repeat, loyal customers spend 67% more on average

than new, first-time customers.

A similar study conducted by Mainspring on behalf of Bain & Co. concluded that it was actually

impossible for ecommerce companies to earn a profit from one-time shoppers.

CBS reported on a review of 31 case studies that showed the average cost of replacing an

employee to be the equivalent of 20% of their base salary.

An analysis of a business survey conducted by Gallop found a 50% increase in productivity for

companies that engaged their employees with incentives the most vs. those that did the least.

NextBee’s programs can create repeat customers and clients made more valuable through regular,

repeat, purchases, along with engaged employees proactively improving the company’s bottom line. All

programs include baked-in tools designed for quick and easy analysis, allowing you to see exactly how

well your program is working in real time. These are the benefits NextBee considers when designing our

pricing philosophy.

How those benefits translate to your specific situation and unique business depends on an open and

honest discussion of your current abilities, limitations, and goals. NextBee prides itself on the flexibility

of its approach and the scalability of its software. We remain committed to providing incentive solutions

to companies of all sizes, in every industry and market.


NextBee Pricing The following pricing reflects general categories and does not represent the specific build that will be

required for your program. Please visit NextBee.com to contact one of our Senior Sales Executives for

further details on our competitive pricing structure.

Standard Access This license suits the needs of most businesses that have a presence across multiple channels (such as

web, social, and mobile) but whose marketing initiatives are managed by central marketing teams.

Program with Web Only Integration $1500/per month

Program with CRM Integration $2400/per month

Program with Channel Specific Settings $3600/per month

Program based on a Custom Build $6000/per month

Teams Edition This license is built for the needs of organizations that have multiple brands or agencies responsible for

managing multiple accounts, each with its own technology stack and targeted audience.

1 to 3 Portals $5400/per month

3 to 10 Portals $9600/per month

10 to 25 Portals $15,000/per month

25 to 50 Portals Custom Quote

Corporate Bundle This license caters to the specialized requirements of businesses with franchises, or organizations where

regional or vertical industry specific marketing teams operate independently.

For 1 to 5 Command Centers $8400/per month

For 5 to 50 Command Centers $12,000/per month

For 50 to 300 Command Centers $18,000/per month

For 300+ Command Centers Custom Quote


Page ii

Program Benefit Analysis No two clients are alike, and neither is their base of users. That does not mean it is impossible to know

the value your program provides. It does indicate a need to understand that there are three segments of

users who will actively contribute to your program’s growth:

Casual Visitors / New Customers – Increase in number of purchases

Dormant / Inactive Customers – Reengagement, active, regular, repeat buyers

Top Customers – Targeted engagement, increase in number of purchases, larger purchases, brand

advocacy, recruitment of new customers

*1st Segment – Active Customers (3+ engagement touch points)

Impact on decision making Number of active program users:

60% // ######

__% of active users making 1+ additional purchase: ##% Impacted by Promotions

__% of active users who increase spending 20%

Impacted by Rewards

Revenue increase from proactive word-of-mouth 5% Impacted by Features

*Figures used for illustrative purposes only and are not intended to reflect the performance of any particular program. Results vary based on market conditions and program features.

2nd Segment – Dormant Customers

Percentage of inactive customers 20%

__% of users actively monitoring brand communication

##%

Impacted by Features

__% of users who will make at least one new purchase within the next 30 days

##% Impacted by Promotions

__% of users who will assist in increasing your performance in social networking measures

##% Impacted by Rewards



Page iii

3rd Segment – Casual Visitors

__% increase of users who convert to buyers ##% Program’s First Impact

__% of users who include a loyalty program’s benefits in the value of a product

##%

Impacted by Rewards

__% of users who change buying decisions based on total cost of purchase

##% Impacted by Rewards

__% of users who change buying decision based on perceived customer appreciation by the brand

##% Impacted by Promotions


Please note, you know and understand your customers better than anyone. Your best judgments on

how active and engaged your customers will be over the life of the program should serve as guideposts

for program goals. The rewards offered, features deployed, as well as the incentives used, will greatly

impact the engagement rates and activities of your most active customers, your dormant customers and

your casual visitors alike.

Contact NextBee for a more thorough understanding of this ROI analysis.


Page iv

Sources

1http://a.abcnews.com/images/Technology/ht_twitter_comcast_ll_131009_16x9_992.jpg 2http://www.inc.com/peter-cohan/3-start-up-lessons-from-netflix-master-of-adaptation.html

Netflix Graphic:

http://online.wsj.com/news/articles/SB10001424052702303902404579149883903402974 3http://www.forbes.com/sites/chunkamui/2011/03/17/how-netflix-innovates-and-wins/ 4http://www.emarketer.com/Article/Twitter-Use-Rises-Across-US-Age-Groups/1010119 6http://www.geekwire.com/2013/amazon-prime-10m-members-counting/


Page v

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portions of the license remain in force.

NO WARRANTY. Open Publication works are licensed and provided "as is" without warranty of any kind,

express or implied, including, but not limited to, the implied warranties of merchantability and fitness

for a particular purpose or a warranty of non-infringement.

IV. REQUIREMENTS ON MODIFIED WORKS

All modified versions of documents covered by this license, including translations, anthologies,

compilations, and partial documents, must meet the following requirements:

1. The modified version must be labeled as such. 2. The person making the modifications must be identified and the modifications dated. 3. Acknowledgement of the original author and publisher if applicable must be retained according

to normal academic citation practices. 4. The location of the original unmodified document must be identified. 5. The original author's (or authors') name(s) may not be used to assert or imply endorsement of

the resulting document without the original author's (or authors') permission.

V. GOOD-PRACTICE RECOMMENDATIONS

In addition to the requirements of this license, it is requested from and strongly recommended of

redistributors that:

1. If you are distributing Open Publication works on hardcopy or CD-ROM, you provide email notification to the authors of your intent to redistribute at least thirty days before your manuscript or media freeze, to give the authors time to provide updated documents. This notification should describe modifications, if any, made to the document.

2. All substantive modifications (including deletions) be either clearly marked up in the document or else described in an attachment to the document.

3. Finally, while it is not mandatory under this license, it is considered good form to offer a free copy of any hardcopy and CD-ROM expression of an Open Publication-licensed work to its author(s).

VI. LICENSE OPTIONS

The author(s) and/or publisher of an Open Publication-licensed document may elect certain options by

appending language to the reference to or copy of the license. These options are considered part of the

license instance and must be included with the license (or its incorporation by reference) in derived

works.


Page vii

A. To prohibit distribution of substantively modified versions without the explicit permission of the

author(s). "Substantive modification" is defined as a change to the semantic content of the document,

and excludes mere changes in format or typographical corrections.

To accomplish this, add the phrase `Distribution of substantively modified versions of this document is

prohibited without the explicit permission of the copyright holder' to the license reference or copy.

B. To prohibit any publication of this work or derivative works in whole or in part in standard (paper)

book form for commercial purposes unless prior permission is obtained from the copyright holder.

To accomplish this, add the phrase 'Distribution of the work or derivative of the work in any standard

(paper) book form is prohibited unless prior permission is obtained from the copyright holder' to the

license reference or copy.

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